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Accounts exercise 3.0
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Transcript of Accounts exercise 3.0
Trial Balance Exercise 1
James Darmody is the owner of Bootlegger Trader, a business that sells alcoholic beverages. The following is his business’ trial balance at 31st December 2014:
Trial Balance for the 12 months ended on 31st December 2014AccountsMortgage loanSalesCarriage inwardsBad DebtCapitalInventoryDrawingsOffice expenseDebtorsUtility expenseOffice BuildingCost of Goods SoldSales wagesSales returnCreditor Advertising expenseCashOffice equipmentInterest expensePrepaid rent revenueAccrued Interest Revenue
$
1100900
6950240030004760560
592004465064601030
2900
166001750
800
$2005064000
55800
8400
1810
3000
Additional information occuring on 31 st December 1) The business earned service revenue $1800 but has not received it.2) It also received $4000 of consultation revenue, although it has not provided any services so far.3) It has earned $500 of rent (per month) for the last 6 months.4) It received $800 of the interest revenue owed from a borrower.
Requirements1) Adjust the trial balance based on the additional information.2) Prepare a P&L statement and Balance Sheet based on the adjusted trial balance.